Negative Churn

melting-ice-psd (1)In a board meeting yesterday, we had a brief discussion around “negative churn”. Negative churn is a catchy phrase and apparently a hot-topic in some SaaS circles. I like some of the concepts and disciplines that an understanding of negative churn implies, but I also think it is an unnecessary concept that actually makes it more difficult to understand the inner workings of an MRR based SaaS business. Some background…

What is Negative Churn?

Negative Churn is an increase in revenue which occurs when the change in┬árevenue within an installed base of customers is net positive from one period to the next. Negative Churn implies that the┬árevenue gained from existing customers who purchase more over time exceeds revenue lost from existing…

Negative Churn